§ 9.02 PURPOSE.
   The provisions of this chapter are further supported by robust quantitative and qualitative research and financial feasibility testing to estimate the new demand for below market rate housing generated by development and occupancy of new market rate housing and the need to maintain the city’s existing naturally occurring affordable housing. The research indicates that development of 100 housing units priced at average market rates generates demand for an additional nine housing units for households at 60% of the area median income and below. This link between the creation of new market rate housing and the increased need for affordable housing forms the basis for establishment of the opportunity housing requirement and associated in lieu of payment as described in § 9.09.
   To further the financial feasibility of creating opportunity housing and to understand the requirements impact on developing projects, the Community Development Department will develop financial modeling guidelines approved by the City Council to assist developers in determining the types of tools applicable and useful for their project.
   Additionally, as of the adoption of this section, the city has approximately 3,500 units of naturally occurring affordable housing, of which the preservation and related substantial rehabilitation of the same is critical to meeting the range of housing needs in our community.
   The purpose of this chapter is to:
      (a)   Maintain a balanced community that provides housing for households at all income levels;
      (b)   Ensure the opportunity for housing that is affordable to the employees of businesses that are located in or will be located in the city and the region;
      (c)   Implement the affordable housing goals, policies, and objectives contained in the City of Bloomington’s 2040 Comprehensive Plan and City Council’s Strategic Priorities;
      (d)   Ensure that this chapter supports the continued creation and preservation of all housing types at all income levels and does not constrain market rate housing creation and preservation within the city;
      (e)   Establish an affordable housing program that offers an array of tools, incentives and compliance options for promoting flexibility in development while at the same time is adaptable to changing economic circumstances and market conditions;
      (f)   Allow for the City Council to periodically review and revise these requirements for changing economic circumstances and to ensure responsiveness to local housing needs and real estate market conditions; and
      (g)   Allow a bundling of more than one of the city’s affordable tools, options, and methods toward a single development in an effort to provide the greatest chance of reaching the extremely low and very low income populations in need of affordable housing.
(Ord. 2019-16, passed 2-25-2019)